The Montreal Exchange’s (MX) regulatory division is proposing to introduce a new process that would allow the exchange to levy fines for a list of nine violations that it has determined qualify as “minor,” such as exceeding position limits, and inaccurate reporting of derivatives positions, as it aims to streamline enforcement.
Under the process, the exchange’s regulatory division’s vice president can either impose a pre-set fine or opt to file a complaint that will be heard by a disciplinary committee if it’s determined that a minor violation has been committed, the MX indicates in a notice announcing the proposal. The subject of the complaint will be able to make submissions and request a hearing before a fine is imposed.
“The division is of the opinion that by simplifying the process used in handling certain violations, it will be able to focus its efforts on files involving more severe violations and situations that are more complex or that have a greater impact on the market and require more attention,” the MX’s notice says.
The MX will publish information on the fines it has imposed, on an anonymous basis. Comments on the proposals are due Dec. 23.